Investors have showed minimal appetite for commercial mortgage backed securities (CMBS) in recent times with only $10 billion in US CMBS issues in Jan-Apr 2008. Volume is a fraction of the $79 billion in bonds that sold during the first four months of 2007 according to Commercial Mortgage Alert. The general consensus at the Commercial Mortgage Securities Association meeting in New York last week was that an estimated $50 billion of CMBS will be issued in 2009 versus $224 billion in 2007. This volume would put production in line with 2002 levels of $52 billion.
Experts say a likely upswing won’t occur until early 2009 at best at which point CMBS bond prices should be stable enough for investors to jump back in. However, CMBS fundamentals are quite healthy and the delinquency rate is only 0.35%!
As a result of the credit crunch, total commercial real estate transaction volume is off 74% YTD as of April 2008 compared to 2007 levels. Until capital is more readily available transaction volume will likely remain slow.
The J and G Lau Family Meat Processing Center is a state-of-the-art facility located on the Cal Poly campus in the heart of one of the most beautiful cities in California – San Luis Obispo. From harvesting to packaging, this over 13,500 sq. foot center will enable all stages of meat processing in the safest possible environment. Beyond the ordinary classroom, students will experience their education in this state-of-the-art Meat Processing Center that is as technologically advanced as the professional world they will enter. Intended as a space where the lines are blurred between industry and education, the Meat Processing Center will allow companies to utilize test kitchens for product development alongside Cal Poly students and faculty. With this kind of vision, Cal Poly graduates will enter their professions as leaders, innovators and experienced problem solvers.
With the meat industry constantly emerging, such an advanced facility is vital to preparing our future leaders. This is your opportunity to contribute to one of the finest meat processing centers and help guarantee a place where past principles and modern ideas will join forces to improve education and raise the bar of meat industry standards.
The 12 month trailing average for capitalization rates in Los Angeles County is five and eight-tenths percent (5.8%) for industrial properties. This rate of return is only a few percentage points higher than competing commercial real estate investments such as retail, multifamily and office. Industrial properties remain to be a clear favorite among sophisticated investors.
In the state of California, the Los Angeles area completed $4.5 billion in commercial property transaction volume while the other major regions of California typically range from $.2 to $1.6 B.
The Los Angeles Downtown Industrial District (LADID) covers 44 blocks, a district with boundaries roughly between Third (on the north) and Eighth and Olympic (on the south), San Pedro (on the west) and Alameda (on the east) Streets. Established as a Business Improvement District (BID), this manufacturing and wholesale District is comprised of mostly seafood, fresh and frozen produce, cold storage and other food related services. Over 600 properties lie within the LADID boundaries. It encompasses a 36 block district between Fourth (on the north) and Eighth (on the south) Streets, San Pedro (on the west) and Alameda (on the east) Streets.
The District is the hub of the food chain in Southern California and hosts the Los Angeles Wholesale Produce Market, which has 550,000 sq. ft. on 30 acres. It is the second largest produce market in the United States generating annual revenues of $2 billion. The historic Fisherman’s Outlet is just one of several great restaurants that attract thousands of customers daily. Dozens of garment and printing businesses also thrive in the district.
Of the top 100 nationwide meat companies in terms of sales, the following are from California: Harris Ranch Beef Co; Superior Farms; United Food Group; Bridgford Foods; King Meats Inc; Central Valley Meat Co; White Apron Meats; Don Miguel Mexican Foods Inc; Custom Food Products Inc; and First Class Foods Inc.
These companies deal in bacon, deli meat, fresh and frozen beef, ground beef, ham, hot dogs, pork, prepared foods and sausage. Also noteworthy, the following food companies are largest in the respective category. Oscar mayer – bacon, hot dogs and deli meat. Stouffer’s – prepared dinners. Johnsonville – breakfast sausage. Hormel Black Label – ham.
Other highlights. Consumers continued to gravitate towards kosher dogs such as Hebrew National. Most ground beef goes to burgers. Japan is the #1 buyer of American pork.
